Dubai Gold & Commodities Exchange Trading Rules PDF

Trading 5. Dubai Gold & Commodities Exchange Dubai Gold & Commodities Exchange (DGCX) commenced trading in November 2005 as the region’s first commodity derivatives exchange and has become a leading derivatives exchange in the Middle East. DGCX’s range of futures contracts offers participants of t...

Trading 5. Dubai Gold & Commodities Exchange Dubai Gold & Commodities Exchange (DGCX) commenced trading in November 2005 as the region’s first commodity derivatives exchange and has become a leading derivatives exchange in the Middle East. DGCX’s range of futures contracts offers participants of the physical commodities markets, such as producers, manufacturers and end users, with a sophisticated means of hedging their price risk exposure. 5.1 Delivery Months Learning Objective 7.5.1 Know delivery months for products traded on the Dubai Gold & Commodities Exchange: Gold Futures (I.4.1); India Gold Quanto Futures (I.5.1); Shanghai Gold Futures (I.6.1); Silver Futures (J.4.1); Crude oil Futures (N.5.1, N.6.1, N.7.1, N81); Equity Index Futures and Options (P61) 7 In order to provide hedging opportunities to its customers, the DGCX provides a range of delivery dates for its contracts. Below are the delivery dates for selected derivatives available on the Exchange: Contract Delivery months Every two months starting February each year, with six delivery Gold futures months available for trading at all times. Every two months starting February each year, with six delivery India Gold Quanto Futures months available for trading at all times. Every two months starting February each year, with six delivery Shanghai Gold Futures months available for trading at all times. Every two months starting February each year, with five Silver Futures delivery months available for trading at all times. Crude Oil Futures – Brent Crude Every month, with 18 delivery months available for trading. Every month, with 18 delivery months and an additional ten Crude Oil Futures – West Texas semi-annual (June and December) delivery months available Intermediate (WTI) Crude for trading. Crude Oil Futures – WTI Mini Crude Every month, with 12 delivery months available for trading. Crude Oil Futures – Dubai India Every month, with two delivery months available for trading. Quanto Crude Oil Futures Equity Index Futures and Options – Monthly and quarterly with three delivery months and one MSCI India Index Future quarterly delivery month available for trading. 193 5.2 Gold Futures Learning Objective 7.5.2 Know details of Gold Futures: contract size (I.4); minimum price movement (I.4.2); last trading day (I.4.3); final cash settlement price (I.4.4); cash settlement day (I.4.5) The contract specification for the Gold Futures contract is as follows: The contract size – 32 troy ounces of refined gold. Minimum price movement – US$0.10 per troy ounce. Last trading day – two business days prior to the last business day of the delivery month. Final cash settlement price – the daily settlement price on the last trading day. Cash settlement day – the business day following the last trading day. 5.3 India Gold Quanto Futures Learning Objective 7.5.3 Know details of India Gold Quanto Futures: contract size (I.5); minimum price movement (I.5.2); last trading day (I.5.3); final cash settlement price (I.5.4); cash settlement day (I.5.5) The contract specification for the India Gold Quanto Futures contract is as follows: The contract size – one lot. Minimum price movement – US$1.00 per lot. Last trading day – two business days prior to the last business day of the delivery month. Final cash settlement price – the benchmark reference gold futures price that is made publicly available on the last trading day. In the event that this price is not available, the Clearing Corporation will determine such final cash settlement price as it considers appropriate, at its absolute discretion. Cash settlement day – the business day following the last trading day. 5.4 Shanghai Gold Futures Learning Objective 7.5.4 Know details of Shanghai Gold Futures: contract size (I.6); minimum price movement (I.6.2); last trading day (I.6.3); final cash settlement price (I.6.5); cash settlement day (I.6.6) The contract specification for the Shanghai Gold Futures contract is as follows: The contract size – 1,000 grammes (1 kg). Minimum price movement – CNH 0.01. Last trading day – 15th calendar day of the delivery month. 194  Trading Final cash settlement price – the Shanghai Gold Benchmark Price as published by the Shanghai Gold Exchange on the last trading day. In the event that this price is not available, the Clearing Corporation will determine such final cash settlement price as it considers appropriate, at its absolute discretion. Cash settlement day – the business day following the last trading day. 5.5 Silver Futures Learning Objective 7.5.5 Know details of Silver Futures: contract size (J.4); minimum price movement (J.4.2); last trading day (J.4.3); final cash settlement price (J.4.4); cash settlement day (J.4.5) The contract specification for the Silver Futures contract is as follows: The contract size – 1,000 troy ounces of refined silver (plus or minus 10%) of 0.999 fineness, cast in one bar by an approved silver refiner and located in an approved silver vault. 7 Minimum price movement – US$ 0.005 per troy ounce. Last trading day – two business days prior to the last business day of the contract delivery month. Final cash settlement price – the benchmark reference silver futures price that is made publicly available on the last trading day. In the event that this price is not available, the Clearing Corporation will determine such final cash settlement price as it considers appropriate, at its absolute discretion. Cash settlement day – the business day following the last trading day. 195 5.6 West Texas Intermediate (WTI) Futures Learning Objective 7.5.6 Know details of West Texas Intermediate (WTI) Light Sweet Crude Oil Futures: contract size (N.5); minimum price movement (N.5.2); last trading day (N.5.3); final cash settlement price (N.5.4); cash settlement day (N.5.5) The contract specification for the West Texas Intermediate (WTI) Light Sweet Oil Futures contract is as follows: The contract size – 1,000 barrels. Minimum price movement – US$ 0.01 per barrel. Last trading day – four business days prior to the 25th calendar day of the month preceding the delivery month. Final cash settlement price – the relevant reference futures price that is made publicly available on the last trading day. In the event that this price is not available, the Clearing Corporation will determine such final cash settlement price as it considers appropriate, at its absolute discretion. Cash settlement day – the business day following the last trading day. 5.7 Brent Crude Oil Futures Learning Objective 7.5.7 Know details of Brent Crude Oil Futures: contract size (N.6); minimum price movement (N.6.2); last trading day (N.6.3); final cash settlement price (N.6.4); cash settlement day (N.6.5) The contract specification for the Brent Crude Oil Futures contract is as follows: The contract size – 1,000 barrels. Minimum price movement – US$ 0.01 per barrel. Last trading day – the second last business day of the second month preceding the delivery month. Final cash settlement price – the relevant reference futures price that is made publicly available on the last trading day. In the event that this price is not available, the Clearing Corporation will determine such final cash settlement price as it considers appropriate, at its absolute discretion. Cash settlement day – the business day following the last trading day. 196  Trading 5.8 Mini WTI Crude Oil Futures Learning Objective 7.5.8 Know details of DGCX Mini West Texas Intermediate (WTI) Light Sweet Crude Oil Futures: contract size (N.7); minimum price movement (N.7.2); last trading day (N.7.3); final cash settlement price (N.7.4); cash settlement day (N.7.5) The contract specification for the Mini West Texas Intermediate Crude Oil Futures contract is as follows: The contract size – 100 barrels. Minimum price movement – US$ 0.01 per barrel. Last trading day – four business days prior to the 25th calendar day of the month preceding the delivery month. Final cash settlement price – the relevant reference futures price that is made publicly available on the last trading day. In the event that this price is not available, the Clearing Corporation will determine such final cash settlement price as it considers appropriate, at its absolute discretion. Cash settlement day – the business day following the last trading. 7 5.9 Dubai India Quanto Crude Oil Futures Learning Objective 7.5.9 Know details of Dubai India Crude Oil Quanto Crude Oil Futures: contract size (N.8); minimum price movement (N.8.2); last trading day (N.8.3); final cash settlement price (N.8.4); cash settlement day (N.8.5) The contract specification for the Dubai India Quanto Crude Oil Futures contract is as follows: The contract size – three barrels. Minimum price movement – US$ 1. Last trading day – four business days prior to the 25th calendar day of the month preceding the delivery month. Final cash settlement price – the final cash settlement price for the WTI Light Sweet Crude Oil Futures Contract converted using the official US Dollar reference rate issued by the Reserve Bank of India, or equivalent successor rate that is determined by the Exchange, on the last trading day. Cash settlement day – the business day following the last trading. 197 5.10 MSCI India Index Futures Learning Objective 7.5.10 Know details of MSCI India Index Futures (INR): contract size (P.6); minimum price movement (P.6.2); last trading day (P.6.3) The contract specification for the MSCI India Index Futures contract is as follows: The contract size – 25 index points x price. Minimum price movement – 0.5 index points. Last trading day – the last Thursday of the delivery month, except where that day is not a business day, in which case the last trading day will be the preceding business day. 5.11 Errors in the Index Learning Objective 7.5.11 Know rules concerning errors in an equity index (P.5) If, no later than 30 minutes after the publication of the final cash settlement price for a particular delivery month, any member of the Exchange notifies the Exchange of, or there otherwise comes to the attention of the Exchange, an alleged or apparent error in the closing price of the relevant equity index due to anything other than an error in the weighting of the price for any constituent stock, then the Exchange must promptly request the index provider to investigate such alleged or apparent error. If in the index provider’s opinion an error has been made, the index provider must correct the closing price which is used to determine the final cash settlement price for that delivery month and the Exchange will then re-determine the final cash settlement price accordingly. No correction of the final cash settlement price will be made in respect of any error notified to the Exchange or coming to its attention after the expiry of the 30-minute period. Neither the Exchange, nor its officers, employees, agents or representatives accept any liability whatsoever in respect of a decision as to whether or not to correct the closing price or as to the amount of any correction, or as to whether or not to re-determine the final cash settlement price. 198